XN000022-1991-12-20 — Page 4

FRIDAY, DECEMBER 20, 1991

FS BRIEFS OMELCO MEMBERS ON BUDGET

THE FINANCIAL SECRETARY,

MR HAMISH MACLEOD, TODAY (FRIDAY) AND FINANCIAL BACKGROUND ΤΟ

BRIEFED OMELCO MEMBERS ON THE ECONOMIC THE NEXT BUDGET.

RANGE IN PARTICULAR, HE EXPLAINED TO MEMBERS THE LATEST MEDIUM

AND REVENUE FOR THE PERIOD TO FORECAST OF GOVERNMENT EXPENDITURE

MARCH 31,

1997.

THE

MEDIUM

RANGE

FORECAST

SHOWS THE

LEVELS OF FUTURE REGARD ΤΟ THE FUNDAMENTAL EXPENDITURE WHICH ARE ACCEPTABLE, HAVING POLICY THAT SPENDING SHOULD GROW BROADLY IN LINE WITH THE ECONOMY.

EXPENDITURE WITHIN THE EXPENDITURE LEVELS FORECAST, GOVERNMENT

FIVE PER CENT RACH TEAR (OR WOULD INCREASE IN REAL TERMS BY ABOUT ABOUT $4 BILLION IN TODAY'S MONEY).

KEY THIS ADDITIONAL EXPENDITURE WILL ALLOW MORE TO BE SPENT ON

HEALTH SERVICES AREAS, INCLUDING TERTIARY EDUCATION, SOCIAL WELFARE, AND THE ENVIRONMENT.

MR

MACLEOD

COMMENTED

THAT

WOULD THERE

TO PLEASE

NEVER EVERYONE,

BE

IN THESE AREAS AVAILABLE TO SPEND RESOURCES COULD ONLY BE MADE AVAILABLE BY REVIEWING EXISTING PROGRAMMES.

ENOUGH BUT MORE SPENDING

SERVICES WERE IN SOME AREAS NEW AREAS. BUT OVERALL SERVICES, NOT

HE EMPHASISED THAT REPORTS OF "CUTS" IN VARIOUS THUS DANGEROUSLY MISLEADING - SAVINGS WERE BEING MADE TO REDEPLOY RESOURCES TO HIGHER PRIORITY OR THERE WOULD BE REAL INCREASES IN AREAS LIKE THE SOCIAL CUTS.

FINANCIAL

SECRETARY EXPLAINED

THAT

PROJECTS

THE PUBLIC OTHER NEW

THE

ALTHOUGH RELATED TO THE AIRPORT DEVELOPMENT WOULD. HAVE PRIORITY IN WORKS PROGRAMME, MORE THAN $18 BILLION WOULD BE SPENT PROJECTS IN THE FORECAST PERIOD, IN ADDITION TO THE ONGOING PROGRAMME.

THROWING HE ALSO CORRECTED RECENT REPORTS PROPORTION OF THE PUBLIC WORKS PROGRAMME TO BE SPENT ON PROJECTS.

ON

ON DOUBT

THE AIRPORT CORE

DURING

TO ABSORB ABOUT

THE

YEARS SIX

ONE-QUARTER

NEEDED

OF FOR

THIS WAS, IN FACT, EXPECTED

EXPENDITURE CAPITAL CONSTRUCTION OF THE AIRPORT PROJECTS.

TOTAL

TURNING TO THE QUESTION OF REVENUE EXPENDITURE, MR MACLEOD REMINDED MEMBERS OF $25 BILLION OF

THE GOVERNMENT'S

RESERVES

ΤΟ FUND THESE LEVELS

OF

THE NERD TO SET ASIDE FOR THE POST-1997 HONG

KONG SPECIAL ADMINISTRATIVE REGION ADMINISTRATION.

/HE ALSO